New Delhi: Vehicle sales in India between April and July this year fell 5.7% compared with the year-ago period, the Society of Indian Automobile Manufacturers said on 9 August, as demand for motor cycles and trucks waned on higher credit costs.
Domestic auto sales, which cover passenger cars, trucks, two-wheelers and auto-rickshaws, fell to 2.96 million in the first four months of the financial year from 3.14 million a year earlier, SIAMsaid.
Despite the overall downturn, passenger car sales jumped 12.6% to 4,64,786 and scooter sales were up 17.2% to 3,44,006.
On the losing side, there was a 15.1% decline in motor cycle sales to 1.75 million while truck sales fell by almost 11% to 61,348.
Banks have cut back on loans to buyers of motorcycles, crimping sales growth in the world’s second-largest two-wheeler market as the Reserve Bank of India has hiked interest rates to dampen inflation.
Easy bank credit, new models, deficient public transport and rising oil prices had sparked a boom over the past several years in vehicle sales, especially motor cycles.